Kosmos Energy gains after walking away from Tullow acquisition

Kosmos Energy

17/12/2024 15:22

(Updates)
    ** Shares of oil and gas producer Kosmos Energy  KOS.N  rise
more than 12% to $3.04
    ** Company walks away from its plan to buy West
Africa-focused Tullow Oil  TLW.L 
    ** Kosmos does not intend to make a firm offer for Tullow at
this time, it says without specifying any reason
    ** The announcement comes less than a week after KOS
revealed it was in early talks for an all-share acquisition of
Tullow
    ** James Hosie, research analyst at Shore Capital
Stockbrokers, says there was logic to considering a transaction
given the shared assets in Ghana and scope for operational
synergies
    ** "But, any transaction would have required the support of
the Ghanaian government and the creditors of both companies,
which may have been challenging" - Hosie
    ** Shares in London-listed Tullow down 12% at 20.5p
    ** TLW down ~47% YTD, while KOS down ~54%

 (Reporting by Vallari Srivastava and Prerna Bedi in Bengaluru)
 ((Srivastava.Vallari@thomsonreuters.com))